FxWirePro: 11th February Key updates

Here are some key updates that as a trader you need to keep a tab on.

• Speaking over the weekend, the UK Prime Minister Theresa May has rejected the proposal of targeting a customs union agreement with the European Union. Many had expected that such a move could win opposition Labour Party lawmakers. The UK lawmakers are dead against the ‘Irish backstop’ in the current agreement approved by the European Union. However, Germany warned that EU under no circumstance would accept a hard border between two parts of Ireland.
• Bloomberg reports that China’s lunar holiday spending was the slowest since 2011, https://www.bloomberg.com/news/articles/2019-02-10/china-lunar-new-year-holiday-retail-catering-sales-up-8-5-cctv
• After Italian Deputy Prime Minister Matteo Salvini said on Saturday that Bank of Italy and market watchdog needs to be cleaned out as they failed at their supervising task, Italy’s economy minister Giovanni Tria warned against such attack and urged steps to win back investors.
• China’s foreign ministry spokesperson said that he hopes for the positive outcome in the ongoing negotiations between the U.S. and China. United States trade representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin set to meet China’s vice-premier Liu He later this week.  
• Inflation continues to disappoint in Europe. Swiss CPI declined 0.3 percent on a monthly basis. Up 0.6 percent y/y, down from 0.7 percent prior.
• Bloomberg survey suggests that economists are still expecting the European Central Bank to hike rates at least one in 2019, despite the recent dovish rhetoric from the central bank.
• The dollar remains well-bid to begin the week.

Data from UK was very disappointing,

• Manufacturing production -0.7% vs +0.2% m/m expected
• Prior -0.3%; revised to -0.1%
• Manufacturing production -2.1% vs -1.1% y/y expected
• Prior -1.1%; revised to -1.2%

• Industrial production -0.5% vs +0.1% m/m expected
• Prior -0.4%; revised to -0.3%
• Industrial production -0.9% vs -0.5% y/y expected
• Prior -1.5%; revised to -1.3%

• Construction output -2.8% vs +0.1% m/m expected
• Prior +0.6%; revised to +0.1%
• Construction output -2.4% vs +1.5% y/y expected
• Prior +3.0%; revised to +1.8%
   
• In addition to that, the December GDP was much weaker than anticipated. In December, GDP contracted by -0.4 percent m/m, compared to no growth expectation.